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The government today announced Rs 50 per quintal increase in the minimum support price of paddy to Rs 1,360 to encourage farmers to cultivate rice, but said that the decision will not have an impact on inflation.

Minimum support price (MSP) of pulses has been raised by up to Rs 100 per quintal.

The Cabinet Committee on Economic Affairs (CCEA), in its meeting held today, approved the MSPs of kharif crops for 2014-15 crop year (July-June).

"Paddy MSP has been hiked by Rs 50 to Rs 1,360 per quintal for 2014-15 crop year," Law and Telecom Minister Ravi Shankar Prasad told reporters after the CCEA meeting.

Paddy MSP of Grade 'A' variety has been raised by Rs 55 to Rs 1,400 a quintal. Paddy is a major Kharif crop, the sowing of which starts with the onset of monsoon in June.

When asked whether increase in paddy MSP will lead to rise in prices, Prasad said: "I do not think rise in MSP is directly linked to inflation. We are taking several measures to control inflation.

"In view of possibility of below normal monsoon, the government has gotten into action and taken several steps to control prices. We have accepted the recommendation of CACP in toto. We have given best possible deal to farmers".

Cotton MSP has been increased by Rs 50 per quintal to Rs 3,750 for medium staple, and to Rs 4,050 for long staple.

For pulses, the CCEA approved a Rs 50 hike in the support price of 'tur' and 'urad' to Rs 4,350 a quintal each, while Moong MSP was raised by Rs 100 to Rs 4,600 a quintal.

In oilseeds category, the government announced an increase of Rs 50 in the support price of sunflower seed to Rs 3,750 a quintal, besides a Rs 100 hike in MSP of sesamum and nigerseed at Rs 4,600 and Rs 3,600 a quintal respectively.

The CCEA approved hike in jowar MSP by Rs 30 to Rs 1,530 a quintal for the hybrid variety and Rs 1,550 a quintal for the maldandi variety for this year. Ragi's MSP was raised by Rs 50 to Rs 1,550 a quintal.

The Agriculture Ministry had recommended retaining the MSP of bajra and maize at Rs 1,250 and Rs 1,310 a quintal respectively. It had proposed keeping the MSP of groundnut and soyabean unchanged for this year at Rs 4,000 and Rs 2,500- 2,560 a quintal respectively.